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The Dylan Ratigan Show

News/Business. The day's most important issues and breaking news stories. New.

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Afghanistan 16, China 10, America 8, Us 8, Washington 7, Dylan 6, Florida 6, United States 5, Taliban 5, John Boehner 5, Abu Ghraib 4, Google 4, Boehner 4, Mike 4, Terry Jones 3, Matt 3, Pentagon 3, U.s. 3, Bayer Am 2, New Bayer Am 2,
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  MSNBC    The Dylan Ratigan Show    News/Business. The day's most important  
   issues and breaking news stories. New.  

    September 8, 2010
    4:00 - 5:00pm EDT  

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pence. plus, bu a book, get some press. that florida pastor today defending his plan to burn the koran on 9/11. does this wacko deserve the attention he's getting, and why do senior administration officials continue to address his absurdity? also, is google going psychic? the web giant taking another step towards world domination, and the show starts right now. all right. the economy running on empty. once again both parties in my view running on false solutions to fill the tank as they ignore the elephant in the room that is the sucking sound of money leaving our country through financial services, trade deficit and, of course, automation of our economy. president obama's latest financial fuel so to speak, 180 billion in tax breaks and transportation projects. the white house clearly hoping it will pump some life in
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democrats come november, even though the partisan politics in washington make it all but certain by most people's assessment that we'll not see any bill passed, at least before election day. the president certainly pumped up this afternoon on the road in hard-hit ohio where the unemployment rate is 10.3%. >> the economy is growing again. the financial markets have stabilized. the private sector has created jobs for the last$ru months in a row, and -- and there are roughly 3 million americans who are working today because of the economic plan we put into place. >> stop me if you've heard that one before. cash for clunkers which cost the government $3 billion in borrowed money, boosted car sales for a grand total of two months. can you see the chart. when the program ended, detroit's tanks started running on empty once again. look at the only buyers tax credit with a price tax of $25
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billion. all these well-intentioned, but not addressing the actual problems in the case of homes, a credit bubble that drove the prices too high and they remain too high, and can you see as soon as the program ended, home sales plummeted. two more examples of why continuing to burn money in many ways may be expedient in the short term but absent burning that money while addressing the structure of our economy, you may just be accelerating the move towards the cliff you hear so much about. whether it's democrats and their don't call it a stimulus a stimulus the republican objective is to make sure that the wealthiest americans stay that way through bush tax cuts. how long will politicians keep offering false solutions to a problem that's entrenched an chronic in our country i? want to take you to the white house where we're choijoined by
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austan goolsbee of the president's economic council. tremendous respect for you and the work you're doing on behalf of this country and the job you have. i would like for you to describe the logic behind the plan you rolled out today. >> okay. i think you were a little unfair perhaps to the targeted policies that the president is outlining. one of the centerpieces is a permanent increase and simplyification of the r & d tax credit, trying to encourage companies to locate their r & d spending and do that investment here in the united states which on both side of the aisle bomb have emphasized how important that is. >> yeah. >> for the long run competitiveness. >> your point is well made. >> the second is infrastructure spending on roads, bridges,0 airports, et cetera, which, again, is an important long run component, and if you look at our competing nations around the world, they are heavily investing in their
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infrastructure whether it's ports, airports, runways and highways in an effort to try to get business to locate its investment in their countries rather than in the united states, and the third component is temporary, but it is encouraging the private sector to do their factory and equipment investment in the u.s., and i think all of those are about trying to rebuild and put us on a long run growth path and i think it's fairly important. >> in addition to that, when you look at the fact that we need 30 million jobs, not 10 or 100,000 jobs a month, we need to be adding hundreds of thousands of jobs a month just to break even considering what we've been through, and when you look at that reality and you look at these approaches knowing that we, again, in my view, and i'd be interested to hear your thoughts, we have a structural problem, how do you address the mass need for employment with a structure in this country that still incentivizes capital in many cases to leave the country to be used for either speculation or something else? >> well, look, i -- i agree with
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the sentiment that we want to make a level playing field. we certainly don't want a tax code that encourages people to ship jobs overseas or anything like that. we want to try to encourage real investments here in this country. that's the point of this policy with infrastructure, are r & d, with actual factory and equipment investment being tax favored. it's not about speculation. those things are in the real economy. they are not about speculative ventures. >> i'm not saying that they are. sorry to interrupt. i'm not saying that what you're suggesting is speculation. i'm saying the entire investment architecture of america, 56% of the average daily trading in the stock market, as you know, austan, is done by robots. there's an incentive to take pensions and retirement funds in this country and not put them into investments in the sorts of things that you and i would agree we need but to use them to purchase credit speculation for lending for houses. we -- we don't have a mechanism
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right now that takes the retirement money, people like myself, you and everybody else and drives it into investment in our country. we have a system that takgs tht money and drives it into a banking system that uses it to facilitate credit and lending that's then used by bankers and politicians. >> well, look, what i would say is on your grand analysis we should explore all of those issues. on the policy side, and i'm just a policy guy, all we can do is use government policies to try to encourage investment in the real economy, in r & d and factories and equipment and those things to make that an appealing investment rather than speculation. we can put in place tougher regulatory oversight. we can put in place a strong consumer financial protection bureau, and things of that nature to try to address some of those, but what the president is doing here is targeted job
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creation in specific sectors, industries or different kinds of investment that will correlate with job growth, and there's no question we're in the deepest hole since 1929. it's -- we have come a fair way, as the president says. we've finally had eight straight months of private sector job creation, but he's the first to admit we've got well more to go, as you say. we've got to start creating many, many more jobs before we're going to view this as a recovery, and so, look, we're open to looking at these targeted jobs ideas, as he has been, for the last year and a half. >> yesterday it came out that the united states for the first time, if not ever in many decades, and i suspect every, is no longer among the top three for foreign direct investment. brazil, china and india now occupy that location. if you were -- if you could -- if you did have a magic wand, in
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your view, what would you do or what would you drive policy towards to try to -- to bring america back up as a magnet for money and jobs on the world or in the world, excuse me? >> well, you know, there are short run and long run things, and i think the president has identified this issue of making the united states a place where people want to invest as a key component to job creation going forward. i think the things that you would want to do would be giving tax incentives, trying to get the short run economy booming again because in the long -- over the long history of the country we have seen, when the american economy is strong, we are a place that people want to invest, regardless in some sense of what other factors there are, but the longer run policies i think has to be the education system and getting our workers the training that they need so that they are competitive against others and they can build decent long-standing careers, so, you know, our kids
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can make a good living the way their parents did. >> investment and education is a good combination, austan. thanks so much for giving us a piece of the information. >> great to see you again, dylan. >> joining us is peter morici, former economist at the federal trade commission. peter, what are your thoughts on today's plan? >> wholly unexciting and nothing new. the president wants to permanently renew the tax credits. won't have any effect. investment tax credits through 2011. the history of those things is they cause a little bit of new investment initially and then there's a big drop-off like with cash for clunkers. we can expect the same thing yet again, and infrastructure. he proposed to cut in other places so basically you're going to cut jobs in one place to create a job in another. the structural problems, not enough customers, the big trade deficit, outsourcing with china, the real problem there is the undervalued currency.
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the president is silent on that issue, the undervalued uan, promised to do something about that when he was a candidate in ohio. today you did not hear a word about that. that is the big problem. the regional banks don't have money to lend small businesses, even if they can find a customer. why? he used the t.a.r.p. to create big bonuses on wall street? today he talked about how the republicans for years facilitated huge bonuses on wall street. heck, he's financed more bonuses in two years than george bush and bill clinton did in 16. >> let's back away from both of the political parties because i think both of you and i at this point understand that neither party to exhibit a true strength or willingness to engage the elephant in the room, that is a system that is drawing money out of our country as opposed to drawing money into our country on the simplest of levels. how bad dosç it have to get? how bad do you think it can get in this country before either political party will actually be forced to deal with the elephant, china, too big to play, player-based health care, down the list, and stop with
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either the hope dazzling and sort of make you feel like it's all good even if it's not or the fearmongering, neither of which -- both of which actually prevent us from addressing the elephant? >> well, it's actually getting that bad now. last month we created -- if you take out health care and social services which are subsidized by the government and temporary jobs, the private sector only created 10,000 jobs. at that pace, the private sector is only creating enough jobs to absorb 5% of the high school and college graduates we have each year. basically the private sector is in neutral. it's disingenuous to say we've had eight or nine months of private sector jobs growth. private sector jobs growth in this country right now is lower than a snake's belly so it is that bad. my feeling is sometime next year there's going to be panic in washington. >> what would you have them do? what would you have had the president say today in reality, not in fantasy land? >> okay. fix the currency with china.
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if china doesn't want to value its currency put a tax on dollar purchases of uan so folks aren't being subsidized to invest in china. >> and what about the anxiety about the fact that they hold the united states debt or the anxiety that it will provoke all sorts of counter or retaliatory behavior from china if we start taxing chinese imports? >> china sends so many more products to the united states than we send to china, it really can't retaliate on the level of trade without essentially destroying its own economy. >> what about selling all of our debt? >> what are they going to do with it? who is going to buy it? they are stuck with it and if they don't buy our new debt in the short term, all they are doing is taking dollars out of circulation. ben bernanke can print new dollars and purchase the same debt. >> what about the increasing number of young chinese men who are unemployed because they are no longer able to export chinese unemployment among young men, especially, to our country,
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because of the corrective actions you suggest? >> well, we haven't taken those correctivqç actions. yes, it's going to create problems in china. but right now this administration, like the bush administration, worries too much about the welfare of chinese workers. the first responsibility of the president of the united states is to worry about workers, for example, that manufacture in the midwest. the fact of the matter is henry paulson, as bush's treasury secretary and timothy geithner as president obama's treasury secretary, have worried too much about the welfare of chinese workers and not enough about the welfare of american workers. we need a government in washington that puts the american worker first, and we haven't had that for a very long time. >> peter, it is a pleasure, as always, to have the conversation. thanks for your analysis and thoughts. peter morici talking about the structure of the american economy which is -- people think, oh, that's a good subject actually, especially these days, because if we don't deal with it, there won't be jobs. thanks, peter. coming up on "the dylan ratigan show," from the lunatic fringe to the mainstream media,
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the florida pastor today defending his burn the koran event on 9/11. we'll look at possible effect on our troops overseas, our policy in the middle east and also discuss whether pastor terry jones deserves any of the attention he's been getting, especially from the most senior members of obama's cabinet. having the right real estate agent on your side is more important than ever. at remax.com, you can find the experts you need, whether you're trying to sell of hoping to buy. nobody sells more real estate than re/max. visit remax.com today. time to face the pollen that used to make me sneeze... my eyes water. but now zyrtec®, the fastest 24-hour allergy relief, comes in a liquid gel. zyrtec® liquid gels work fast, so i can love the air®. ♪ [ upbeat instrumental ]l. [ rattling ]
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is -- as of right now we are not convinced that backing down is the right thing, so on september the 11th we shall continue with our planned event. >> well, that, of course, pastor terry jones who we now know has no plans of cancelling his koran burning in gainesville, florida, on september 11 and police in afghanistan, yes, in afghanistan, put on high alert today, the country bracing for violent protests that could erupt if in fact he goes through it with it as promised. condemnation of pastor jones has been widespread and swift. general david petraeus, the man running the war in afghanistan, the images of sufficient an action would be as indelible and inflammatory as have been the images of abu ghraib and today secretary of state hillary clinton coming out and having this to say about the pastor. >> we're a country of what, 310 million plus right now, and i mean, it's regrettable that a
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pastor in gainesville, florida, with a church of no more than 50 people can make this outrageous and distressful, disgraceful plan and get, you know, the world's attention. >> so what kind of effect will have have on our efforts in afghanistan and the rest of the muslim world, for that matter, the mosque protest here in new york. the director of the afghanistan study group joins us and has just released a study on the future there, a plan "b," full, for afghanistan, but i want to start, matt, with the rhetoric, and i hate to assign -- if you hate to do this, but at the same time when i have the secretary of state and general petraeus saying this is worse than -- this will be worse than abu ghraib, how do -- how does this and other anti-muslim sentiment in this country play out in afghanistan? >> it's actually -- it goes right into the hands, right into the propaganda machine of al
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qaeda andç the more extreme elements of the taliban because they like to portray this as west say tacking the muslim world, that the west is the -- that christians are attacking the muslim world. it's another crusade. i don't agree with everything that secretary clinton or general petraeus have to say, but i agree with them on this. first off, this guy is a jerk. i feel like i'm a bad guest because i don't have any more nuanced or intellectual, this guy is a jerk but it is true what general petraeus said about the abu ghraib photos. if you look at the reasons why people -- why men, young man went to iraq to become suicide bombers and to blow themselves up, overwhelmingly it was because of the abu ghraib photos and the guantanamo bay prison that motivated, that they in turn thought that they were going to iraq or to afghanistan to defend their culture, to
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defend their muslim lands against western invasion, against western, you know, occupation and domination, so what this guy in florida is doing, what this pastor if you can call him that is doing in his little group of people down there is really playing right into the hands of al qaeda and the more extreme elements of the taliban over there. >> last question for you, matt, and i want to move on to this plan "b." were you surprised to see such senior officials in our government describing the chicanery of a fool in florida with 50 friends? >> i was, because we're still talking about this a few days later, and now there's going to be a video of it and it's risen to that level where it's well known not just in afghanistan but throughout the rest of the muslim world as well as throughout the rest of the world, and, you know, it betrays everything that, you know, the inclusiveness and the acceptance and the tolerance that christianity is supposed to -- to preach as well as the tenets
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of our constitution of tolerance and acceptance, so -- as well as freedom of religion. i'm surprised that the administration, that various members of our government have commented on this so broadly, and it's disappointing because i think it's a story that should have been ignored and just left in that burn pit he's got down there to begin with. >> wouldn't it be fun if you had religions where being a member of the religion didn't mean you had to kill everybody who is not part of your religion or didn't provide a fundamentalist gateway to do that, a lens through which you could achieve that? >> actually a comparative religion major in college, and very early on, one of my first professors said, you know, if you're crazy enough, you'll find anything in the bible or anything in the koran or anything in the talmud to justify your own selfish greed or own interests or whatever. i think most americans, most citizens around the world understand that this guy does not represent america. >> yeah. >> but the problem is it plays
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into what al qaeda is saying, and it helps recruit. they don't need a lot of recruits. >> right. >> that's the problem. you're talking about a small organization of only about a few thousand people. they don't need that many men willing to blow themselves up to be successful. >> our wackos making videos is great for them to recruit their wackos. >> yeah. maybe we can find an island to put them all on together, you know. >> it's been thought of, i'm sure. plan "b," is there a legitimate alternative path? what is it, and why is it better, in brief? >> sure. one of the frustrations we have is that we are not seeing a credible alternative emerge to our strategy in afghanistan which has to be looked at in the course of the last five or six years as a counterprotubtive and failing strategy and a costly strategy. your last segment on the economy. we're spending $104 billion this year on the afghan war. next year we'll spend $119 billion on the afghan war,
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according to the congressional research service. afghanistan's economy is only $14 billion. this is a gross -- and it doesn't -- there's only 50 to 100 members of al qaeda in afghanistan. the costs that we are expending do not come close to achieving the benefits we're receiving, so -- >> so what's the plan? >> the plan is we have a consensus of foreign policy experts. there's about 50 of us or so, and we're a network. this is a broad-reaching report that goes along five lines. can you see it there on the screen. >> let's talk about this. it says emphasize power-sharing and political reconciliation with who, kasjai? the guy is a crook. he's, you know, running heroin to dubai or whatever he's doing. >> correct. however, if you look at the taliban, if you look at the insurgency and the taliban is not al qaeda, the taliban are insurgents concerned with local issues in aflg, they are not
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transnational terrorists, what we need to understand is have political grievances, and just like we did with the sunnis, address them and reach out and right now we're not doing that and being counterproductive. they are excluding different groups in afghanistan which drives them to the taliban so we have to address that. >> you say scale back and suspend combat operations in the south briefly. why is that a good idea? >> our troops, basically the foreign occupation fuel support for the taliban. the presence of foreign troops is a catalyst for groups to support the taliban. >> you see keep the focus on al qaeda a domestic security, pretty self-explanatory and promote economic development. how do you and the 49 others of you suggest that we do that? >> we have to take a completely different approach. we have spent $50 billion just in the united states alone in afghanistan in development funds in, aid money, and still the country has a life expectancy of
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44 years. still one in five children die before their fifth birthday and still less than 10% of afghanistan has access to electricity. the approach we've taken to economic development in that country has not worked. it's not decreased the conflict. it's not kept american soldiers from being killed. it's not decreased support for the taliban. so we need to look at using other approaches primarily going through local ngos and working through lower level solutions to bring about some degree of development there that helps to foster stability and also helps to foster the political proses. >> what is the response to this been from the pentagon or the white house? >> we've had some contacts with members of the administration, as well with the pentagon and well as from the state department, and right now i -- it's a pretty open discussion we're having and that's what we want. we do not want to be adversarial on this. we want to speak with the administration, speak with the pentagon and speak with the state department. we want to haveç a big tent. like i said, this report is a consensus.
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we're not doctrinal or dogmatic about it at all. i myself don't agree with all the points in it, but it's an alternative, because right now the strategy we have is counterproductive and failing and it's not getting us out of afghanistan and it's not bringing stability to that country or to that region. >> here, here. thank you, mr. hoh, and thank you for your work on behalf of our soldiers in this country to try to broaden and engage the die mog for a war in my view that's gone on far too long. thank you, matt. up next, is washington ignoring a fair, common sense plan to help the working class right now? and create jobs right now? a simple, simple solution to create jobs right now. it's the topic of today's daily rant. it's miller time after this. tdd# 1-800-345-2550 what if every atm was free?
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time now for yet another daily rant. the president outlining $180 billion plan, tax cuss designed to boost our lagging economy and try to save the democrats at the same time from an impending mid-term meltdown, but one cut you will not see is in your payroll taxes next week or the week after or the month after that. matt miller, a colum think of the for "washington post" online here to talk about just that and why it may be so beneficial. matt, take it away. >> ask any economist or business person what kind of tax cut would be the biggest boost to job creation, and the answer is clear. a cut inç payroll taxes, becau this would directly lower the cost of employment. ask any champion of social justice which taxes the unfairest tax of all, and the answer again is clear, the payroll tax, because it takes a bigger bite out of a dishwasher's paycheck than a ceo's. so which tax has the democratic white house decided it won't propose cutting as part of its
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last-ditch effort to convince voters it's serious about jobs? the payroll tax. if that didn't make sense to you, you're paying attention, and you're beginning to see why the president's latest economic rescue plan has been held hostage again by democratic confusion and timidity. the white house dropped the idea of the pig payroll tax cut because it might appear to deprive social security of cash even as democrats are accusing the gop of plotting to gut the program on the campaign trail. in other words, the one tax cut that could have immediately created jobs has been declared off limits because it would muddy the democratic message that republicans are out to destroy social security. now, maybe the political desperation is understandable, but the democrats' policy confusion is worse. here are the facts. when social security began, payroll taxes were just 2%. today, between the employer and employee contributions, it's grown to 15%. the payroll tax has soared from
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2% to more than a third of federal revenue means it brings in nearly as much as the income tax, and, in fact, most families pay more in the unfair payroll tax than income tax all together. why don't we just cut it and find smarter ways to fund the social programs we need like higher taxes on dirty energy. that's this fall's mystery, a mystery that will help leave millions jobless. cutting payroll taxes now would create jobs outside washington. leaving payroll taxes untouched may help protect some democratic jobs inside washington. >> why is that so much beter? why is a decision to go where you're suggesting that much better than the r & d tax credit or an infrastructure spending? walk me through what the difference is. >> it's not that those things aren't bad things to do, but if you want the most immediate çh, the cost of employment is directly affected by the wedge that the payroll tax puts on hiring any additional workers. any time somebody decides to hire somebody, it's not the
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$po,000 for that employee, that's $30,000 plus the 7.5%, you know, on top of that and it all creates a disincentive to add new workers. >> are we foolish to talk about changing our tax code in any way, whether it's payroll tax, investment incentive, i don't care what it is, without having a more honest conversation about our tax code? in other words, can you pick little pieces like this without actually addressing the fundamental structure of how we collect money in this country? >> ideally we'd have a broader discussion about all of this but we're in what i describe as a jobs emergency, and as long as you can do something that directionally would be the right thing, cutting taxes on things like payrolls and at the same time phasing in higher taxes on things like consumption that would click in only once unemployment came down from 10% to maybe 6%. >> sure. >> that would signal to the markets that we're serious about our long run fiscal problems. >> but could you do the tax cutting and also look to propose the consumption tax policy in this political environment? >> look, that's always the --
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the question -- >> or any political environment? >> the question is there's never a good time in america to have the broader right conversation, but we'll have to start somewhere, and if we don't start by trying to take these steps when we're in an emergency, it's harder to think we're going to take them when times are calm. >> a pleasure. matt miller, the tyranny of debt ideas, what a book title, and -- and a heck of a point of view to come with it. mr. miller, a pleasure to know you. thanks for the time, miller time, in our own world. still ahead here on "the d.r. show" we'll talk to republican congressman mike pence about the president's attacks on gop and more importantly we'll talk to congressman pence about the republican party's plan for the economy and why they have chosen the path for job creation they are advocating. that's right after this. also, is google going psychic? the web giant will soon start searching for what you want before you even type it. they are in your brain, people. we'll be right back. pags can i have some ice cream please ?
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welcome back. we knew eventually google would be able to tell the future with you didn't think it would be quite this soon. today google unveiled its google instant feature. >> now, results appear automatically as you type, with no need to hit enter or click the search button. as soon as you see what you need predicted in gray text, you can stop typing and just look down to find your results waiting. >> well, google says a new feature will shave two to five seconds from every search. it guesses what you're about to type and starts giving you results. for example, as soon as you type in w looking for the local weather, weather.com comes up automatically. when i type in the phrase i don't like, i get mondays, spiders and snakes, along with people. two of those answers are right. how did they know. this will only fuel the conspiracy theorists who say google is becoming big brother
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but as for google taking over the world, somebody wake me when they are able to predict what steve jobs will do. next, up next, republican congressman mike pence weighing in on the president's economic speech today and explaining why he thinks the gp has the right plan to create jobs. we'll talk about that right after this. [ male announcer ] ever have morning pain slow you down? introducing bayer am, an extra strength pain reliever with alertness aid to fight fatigue. so get up and get goin'! with new bayer am. the morning pain reliever.
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and there's a train that got a whole city moving again. somewhere in america, the toughest questions are answered every day. because somewhere in america, more than sixty thousand people spend every day answering them. siemens. answers. ♪ can't help it, can't help it ♪ ♪ can't help it, no no no... ♪ come on. ♪ can't help it, can't help it, no no no ♪ ♪ you drive me crazy ♪ and i just can't stop myself, uh! ♪ ♪ can't help it, can't help it, can't help it. ♪ there were no new policies from mr. boehner.
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cut more taxes for millionaires and cut more rules for corporations. >> you can't have a strong economy if you're raising taxes on the very people that you expect to invest in our economy and to begin hiring people again. >> president obama laying out his plan to fix the economy today, and for once the gop countering with a plan of their own. republican conference chair mike pence here in just a moment to respond to the president's speech, but first, as you just heard, republican leader john boehner offered what you could call a prebuttal this morning in contrast to the president's plan. boehner presented a two-pronged approach, cappinging spending levels at a 08 levels and a two-year freeze on tax rates, including the bush era tax cuts, including the wealthiest 2% of americans, something the president opposes. here now congressman mike pence from indiana. a pleasure to see you again. >> hi, dylan, good to be with you. >> walk us through the logic of this particular proposal to
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create jobs for americans soon. >> well, with regard to what leader boehner was talking about, it's, you know, what i'm hearing all over indiana. i frankly think -- i heard last thursday when i was in cleveland and the four states i visited in the last two days. people want to see washington get spending under control, stop crowding out private lending with all this runaway spending, deficits and debt, and for heaven's sakes, let's have some bipartisan agreement this fall to make sure that no americanç sees a tax increase on january 1, 2011 and john boehner made a good faith offer today for a bipartisan measure that we -- we would pass through the congress this fall that would at least create some certainty in the marketplace about spending and about taxes in the short term, and, unfortunately, you know, the president went to cleveland today and, you know, rolled out kind of the same tired partisan rhetoric, and i think ultimately the president missed a real opportunity today to reach back
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to republicans in the congress and say, okay, we may have large philosophical differences, but here are a few things we can do in the short term that would restore confidence to our economy and start creating jobs. >> how is it more than election year rhetoric to talk about cutting spending, whether it's by republicans or democrats when you exempt defense, social security and medicare which make up 75% of the budget? the republican plan exempted that. the democrats exempted, politically understandable, but if you leave three-quarters of the budget intact, right, what have you -- what are you really achieving? >> well, look, you know, when the republicans passed our budget or at least vote through our budget a year ago, you know, we dealt with entitlement reform. we dealt with domestic spending, and you're absolutely right, that when we -- when we turn the page on this year, whatever the american people decide to do with their congress, dylan,
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we've got to put everything on the table to put our fiscal house in order. what john boehner offered this morning though was really an effort to say, look, how about we just take domestic spending back down to 2008 levels and freeze it there, and then why don't we at least pass a two-year extension so that no american sees a tax increase in january of this year, and, unfortunately, the president just seemed to bat that off his back. he mentioned john boehner about seven different times in the speech, and, look, you know, i'm in politics and i get the tough rhetoric, but the rhetoric of the president's speech today didn't ex@stly invite republicans back to the table. >> when you look at the math of the proposal though, and this is where i take issue honestly both with the republican proposal and the democratic proposal, they are different proposals, but i see both of them as incredibly impotent, $36 billion in non- -- if you go back to '08, you're talking about saving $30 billion to $40 billion which is less
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than 1% of what's in this budget. the president talks about spending $100 billion here. we've got a multi-trillion dollar economy that needs 30 million jobs and counting, and our politicians, with all due respect, are playing tiddly winks. >> look, there's no question that your point in the long term is exactly right, dylan, but when the president shows up and says he wants to spend another $50 billion on infrastructure, i think we had $150 billion on infrastructure in the failed stimulus plan and the president says, you know, he wants to do more borrowing and more spending and wants to allow taxes to go up on job creators in january. >> i get it. >> what leader boehner said how about we begin to turn the ship back -- >> sorry to interrupt you. forget the republicans. forget the democrats. america is a country into which we want money to flow, investment to come. >> right. >> education to yield,
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innovation to occur. we know that younger companies, newer companies create jobs much more quickly than older companies. >> yeah. >> which means we want to have that generation, and the feeling at the very least when it comes to the budget and everything else is that neither political party has the audacity to do anything other than inspire false hope on the one hand or -- or fear monger on the other or everybody uses both instruments but nobody is dealing with the actual issue. how bad does it have to get, congressman, until somebody walks in and says, listen, we have to deal with the trade deficit? you know my list, because we've talked. >> yeah, right, right, right. yeah, i get that. look, in the coming weeks the republicans will unveil a very broad governing agenda that's going to deal with the full range of government reform, government spending, tax policy, get ready for that. >> okay. >> what john boehnerç offered this morning was -- i think what we was doing, dylan, frankly,
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was reaching out to the president saying, look, we hear you talking about 50 billion more in stimulus spending and hear you talking about letting taxes go up. here's a deal, how about we cut spending back to 2008 levels, we can agree on that and agree to do a two-year extension on all the current tax policy. the president batted that back and frankly i think it's a missed opportunity. we could do something positive for the economy. it would be a small step, but it would be a step in the right direction, and -- and what the president chose today was more partisan rhetoric, and i think there had to be millions of americans that were disappointed. >> there are a lot of folks who are also a little skeptical of your suggestion that boehner was reaching out anymore than the president was. i'd like to bring up one other thing. it struck me and i thought of you when i saw it. clearspending.com, the sunlight foundation, how much we'll spend, cut this, do that, blah, blah, right? according to this most recent
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audit, it's unbelievable, $1.3 trillion, 1.3 trillion, 10 billion here, 50 billion there, each trillion is a 1,000 billion, incomprehensible, only the u.s. government and aig can deal in numbers this big, right? 1.3 trillion in government data have reporting accuracies. that is 70% of the total 1.9 trillion in government spending, so we have all the computers. google can anticipate what i'm thinking before i say it, and yet our ability to identify and report in a timely fashion the data set that is the total expenditure of all the tax dollars of every american, 70% of is t is inaccurate. >> well, look, it's -- it's high time that we not only change the direction of government on spending and taxes and growth, but it's high time that we change the way government does business, and i -- i promise you
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if republicans are rewarded the opportunity to lead this congress again, we're going to change the way government does business. we want to bring modernization, new technology. the american people -- >> what's the barrier? >> the constitution itself, the american people are promised a financial balance sheet on an annual basis that is accurate, "táhat you referenced, it's urce difficult, if not impossible, for us to get that. we can change these systems. we can get this government in the 21st century in every area, and we'll commit to that. >> clearspending.com if anybody at home is interested in looking at this and how they calculated it, and congressman, always a pleasure to get the chance to talk with you. i appreciate when you make the time, truly. >> thank you, dylan. >> coming up on "hardball," chris matthews, more on the president's speech today on the economy. but first, why is the u.s. military, the vatican and the media bothering to give any air time at all to our crack pot of the week, lunatic pastor who wants to burn the koran.
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our crack pot trying to create action for their crack pots. why are we stuck dealing with all of these crack pots? we'll mix it up. yellowbook has always been good for business. but these days you need more than the book. you need website development, 1-on-1 marketing advice, search-engine marketing, and direct mail. yellowbook's got all of that. yellowbook360's got a whole spectrum of tools. tools that are going to spark some real connections.
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we are hoping that the pastor decides not to do this. we're hoping against hope that if he does, it won't be covered. >> indeed. what do secretary of state hillary clinton, the vatican, general david çpetraeus, what they have in common? all of them weighed in on the burn the koran day, the brainchild of pastor terry jones
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who has a flair for offending people and people forget that terry jones can't even get a permit from the local fire department, so in the end he may not be able to burn anything at all. should anyone, including us, still be talking about this guy and why are cabinet members doing the same thing? is it an echo chamber? we just provoke each other foolishly? let's mix it up with our panel, a democratic vat gist and former communications director for john edwards and a political reporter with slate. looking at my little twitter feed on my backbury. it sistery jones deserves to be mocked as a semi-bigoted clown. do you agree with that? >> i do. >> i'm happy the story was out there because it was literally hours since the last time we had a huge national debate over something about islam, you know. >> can i -- can i ask you one very thing for our opportunity with our crack pots, when married with our media and our
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politicians to pretty much provoke anything they want when it comes to islam and the counter is their crack pots won't like it? >> yeah. i'm not sure why people like hillary clinton didn't just ignore this question because, look, the guy's church has 50 members. if he had more members, i think he would be promoting that fact, but if you googled the guy a week ago i'm not sure what you would have come up with. maybe a picture of his truck before he painted it with this ridiculous slogan. this really should be a non-story and doesn't reflect well on the press that the response to this guy hosting one stunt is to demand that every official from hillary clinton on down say what they think. >> fair enough. >> and condemn it. >> if you were to look, chris, at our 9:30 meeting yesterday morning, looking there and sitting there and the koran thing is there and we're like we don't want to talk about this stupid crack pot, stupid, right, morning, having coffee, and the next thing you know petraeus is out there yammering about it and
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at that point we made the decision, had this debate in the meeting, but we made the decision after petraeus addressed it that we felt we were obliged then to go with it which, of course, then starts to feed the echo chamber and the next thing you know somebody is asking hillary clinton a question. is there a more elegant way to navigate this? did we make the wrong decision in our 9:30 meetingç after petraeus spoke, chris? >> well, i mean, i would hope that we didn't cover it, but here's the reality. somebody is going to cover, it whether it's the local media or the national media, unfortunately. >> but how much of that is the administration's fault for valuing it by either addressing it, it's just a crack pot? i don't talk about crack pots is one thing you could say, as opposed to all these statements we're getting? >> well, i mean, i think the administration addressed it and responded to it because here's the brutal reality. this footage is going to be used by very crazy unstable people to basically attack our troops or something worse, and this is i